Liabilities and Assets

Assets are anything valuable that a person or business owns, such as cash, property, or equipment, which can contribute to generating income or provide value. Liabilities are financial obligations or debts owed to others, like loans or bills, that need to be paid in the future. Essentially, assets represent what you have, while liabilities are what you owe. The difference between assets and liabilities shows the net worth or financial health of an individual or organization. Managing assets and liabilities effectively is key to maintaining financial stability and growth.